By P Prem Kumar
KUALA LUMPUR (AA) – The world’s first Islamic Venture Capital fund, designed to finance start-up businesses in Islamic countries, is currently in the final stages of establishment, according to the Malaysian government.
Mohd Irwan Serigar Abdullah, secretary general of treasury at the ministry of finance, told reporters in Kuala Lumpur on Wednesday that the fund would be spearheaded by the Malaysian government and the Islamic Development Bank (IDB).
Abdullah added that it would start with a fund of $100 million, with possible expansions in the future.
The establishment is expected to be announced later this month at an IDB Congress in Indonesia’s capital Jakarta.
Representatives from Malaysia’s finance ministry and the country’s venture capital arm Malaysia Venture Capital Management Bhd (Mavcap) are currently at IDB headquarters in Saudi Arabia.
“We are finalising all details on the fund. The memorandum of understanding could be inked during the IDB congress in Indonesia later this month,” Abdullah said.
He added that after the fund is established, other countries would be invited to join.
“Because of time constraint for now, the fund starts with Malaysia and IDB. But once its starts rolling, we want to invite Dubai and Indonesia to be partners.”
Venture capital is funding provided to seed early-stage, emerging growth companies within the technology-related sectors.
The funds invest in companies in exchange for equity in the companies they invest in, which usually have a novel technology or business model in high technology industries, such as biotechnology and Information Technology.
